Dniprovahonmash output drops 4x mom in November

Dniprovahonmash (DNVM UZ) decreased freight railcar output 76% mom to 105 units in November, Interfax reported on Friday. In 11M11, total output was still up 54% yoy to 6,306 units. Roman Dmytrenko: Dniprovahonmash supplies 99% of its railcars to Russia and was forced to halt work on its contracts in October and November as Russian authorities suspended the quality certificate from its main casting supplier – Kremenchuk Casting, in late September. The certificate was reinstated in early December and we expect Dniprovahonmash to return to its average monthly production of 600-700 units already this month. We also expect the company to beat its production target for 2011 by 10% and make 6,900 freight railcars by yearend (+49% yoy).